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A foursome you don't want?

Bad news, according to the old saying, comes in threes. Unless maybe you are a
government worker. In that case, you are eligible for an extra kick, punch, or
dose of bad news because you decided to make public service a career.

The theme of yesterday's column was that some, maybe
most, federal workers face the prospect of being furloughed, locked out or fired
sometime in the new fiscal year which starts Oct.1. Three very real
possibilities. Silly me...

Turns out, that was a happy-meal forecast. Things have suddenly
gotten worse.

Now we learn that the Treasury Department says that Uncle Sam's
line of credit, with China and other nation's, will run out in mid-October. By law the federal
borrowing limit is capped at $16.7 trillion (with a T). And we all know prices
keep going up.

So, Treasury Secretary Jacob Lew has informed Congress that the
federal piggy bank will be down to a mere $50 billion (with a B) by mid-October.
That's just enough to cover Medicare, Social Security payments, federal and
military salaries, and Uncle's power bills for a short time. Then nothing.

The last time this happened (in 2011), Congress and the White House
dueled for months. Finally, the White House agreed to make $2 trillion in
spending cuts over a 10 year period. Generally speaking Republicans, especially
in the House, want to make savings by cutting federal spending — though not
necessarily on the contractor side. Democrats favor tax increases and some
spending cuts.

Both political parties hope to come out of this — or any other
— squabble with the other side looking bad. That would be especially
helpful in the upcoming off-year (2014) election when only the most die-hard
voters tend to go to the polls. Republicans usually seem to lose these sort of
political tests of will in the judgment of voters and the media. The government
shutdown of 1995-96 was a case in point. President Clinton was largely judged the
winner and statesman (the intern thing came later), while House GOP leader Newt
Gingrich (R-Ga.) was the goat.

While President Obama and Democrats agreed to the long-term spending
plan in the summer of 2011, the White House has said it won't negotiate on the
debt ceiling limit again. The Treasury Department says the Congress should
authorize paying for the items it, and the U.S. government, have already charged.

While it is unthinkable that even the dumbest, most ideological
politician will let Social Security payments and military pay lapse, the debt
ceiling issue is still a threat. And federal workers, as per usual, are on the
front lines.

Are you mentally prepared to retire?
The latest report by MetLife shows boomers are not "working til they drop" as
previously thought. More than half of the oldest boomers are retiring years
earlier than expected. But financial planning isn't the only preparation they have
to make.

Treasury says US will hit debt limit in
mid-Oct
Treasury Secretary Jacob Lew has told Congress that the government will run out of
money to pay its bills in mid-October unless lawmakers raise the country's
borrowing limit, which is capped at $16.7 trillion. Lew said in a letter to
Speaker John Boehner released Monday that the government is running out of
accounting maneuvers it has used to avoid hitting the borrowing limit. He pressed
Congress to act so Treasury can keep paying the government's bills.

OPM pushes telework
Wednesday for March on Washington anniversary
The Office of Personnel Management is pushing federal agencies to allow their
employees to telework Wednesday to help ease traffic congestion stemming from the
50th anniversary celebration of the March on Washington. Large crowds are expected
for President Barack Obama's speech on the steps of the Lincoln Memorial. The
federal government will remain open on Aug. 28.